00
Times The Most Dishonest Media Outlet; Trump: Common Core Is Out; Trump:
American Dream Dead; Christie Endorses Trump; Can Trump Be Stopped?;
Rubio/Cruz Tag Team Trump; 11 States Vote On Tuesday; ObamaCare Collapse?;
GOP: Repeal ObamaCare; IRS: Cyber Attacks On Taxpayer Accounts More
Extensive Than Reported; IRS: Tax Data For About 700;000 Households Most
Have Been Stolen; Apple vs. FBI; Apple Meeting Kicks Off; Apple
Shareholders React; Apple Fights The Fed; Apple Fights The FBI; Dow Pushes
Negative; Stocks, Oil Push Lower; Rubio Responds To Trump - Part 2>
Bernie Sanders; The New York Times; Washington Post; Robert Jeffers; Chris
Christie; Oprah Winfrey; Apple; FBI; Tim Cook; Michael Holley; Al Gore;
Bob Iger; Budget; Business; Civil Rights; Congress; Consumers; Defense;
Economy; Elections; Education; Energy; Government; Guns; Infrastructure;
Labor; Meetings; Policies; Politics; Polls; Religion; Safety; Stock
Markets; Taxes; Technology; Telecommunications; Trade; Weapons; Dow Jones
Industrial; NASDAQ; S&P; IRS>
BOLLING: Who's has more, Mat?
LITTMAN: Sorry?
BOLLING: Who-- give me a candidate that who have more momentum.
LITTMAN: Well, anybody who's won the nomination by a lot.
BOLLING: Who .
LITTMAN: (Inaudible), anybody who's won the nomination by a lot has had momentum. But we also know .
BOLLING: Just give me one. I'm looking for a name. Who's had more momentum than Donald Trump had is ..
LITTMAN: Mitt Romney.
BOLLING: . experience -- Romney? Did you say Mitt Romney?
LITTMAN: But Mitt Romney did win the nomination by a lot. Remember .
BOLLING: Let me get it back to -- let me get it back to my Republican. Did Mitt Romney have any near amount of momentum that Donald Trump has?
BLAKEMAN: No. No, no. Romney could never have garnered the momentum, we're seeing this early that Trump has. Trump is a phenomenon. Trump is taken not only the GOP by storm, but he's also eclipsed to Bernie and Hillary when they're on television. It's only when they .
LITTMAN: I totally disagree with this position.
BOLLING: Well, go ahead, go ahead.
LITTMAN: I completely disagree with that position. The reason why I completely disagree with it is, we could see that Donald Trump is not getting -- there's a big chunk of the Republican Party that does not want Donald Trump to be president. We did not see that when Mitt Romney was running.
Now, I agree with you at a certain point, Trump's momentum carries him. I think it's absolutely true.
What we've also seen from independence and then surveys about the general election is that more than 50 percent of the country says they'd be embarrassed if Donald Trump was president.
Latinos, African-Americans don't support Donald Trump at all. So I think this momentum is with a small segment of Republicans and does not carry over.
BOLLING: All right. We'll leave it right there. Let me say, thank you in Matthew and Brad. Appreciate you guys.
Coming up, the GOP candidate say they'll repeal ObamaCare as we're now learning that eight of the 11 surviving ObamaCare Co-Ops on the verge of collapse and could close before the end of the year. That's next.
(COMMERCIAL BREAK)
BOLLING: The candidates laying out their health care agendas in last night's debate and said they're repeal ObamaCare.
Take a listen.
(BEGIN VIDEO CLIP)
TRUMP: Some of the people in the audience are insurance people and insurance lobbyist and special interest. They got, I'm not going to point to these gentlemen of course they're part of the problem.
RUBIO: We're going to repeal ObamaCare completely and replace it with the system that puts Americans in charge of their health care money again.
JOHN KASICH, (R) PRESIDENTIAL CANDIDATE: It's easier to interpret that debt sea scrolls than to understand your hospital bills. The fact is, what we need is transparency with hospitals and with the providers.
BEN CARSON, (R) PRESIDENTIAL CANDIDATE: I propose a system in which we use health empowerment accounts which are like a health savings account with no bureaucrats. And we give it to everybody from birth until death.
TED CRUZ, (R) PRESIDENTIAL CANDIDATE: I will repeal every word of ObamaCare.
BLITZER: Thank you.
(END VIDEO CLIP)
BOLLING: This is a government official admitting that eight of the 11 remaining ObamaCare Co-Ops are in such bad financial binds they could collapse by the end of the year.
Herewith analysis, Kevin Mckechnie, Executive Director of the HSA Council at American Bankers Association and he joins me now.
Kevin, you heard a lot of the plans last night.
KEVIN MCKECHNIE, HSA COUNCIL EXECUTIVE DIRECTOR: I do.
BOLLING: The one that seems to jump out, Ben Carson's, it was some form of health savings account. What's the right answer?
MCKECHNIE: Well, the right answer is an interesting problem because HSA is in the qualified plans that go with it and that been around long before ObamaCare was passed.
The Affordable Care Act doesn't really infringe on HSAs. In fact, it empowered them. And so, it's gratifying to see all the candidates reach out for HSAs as the solution. But it's important to point out that it's been there already and it will be there regardless of how the laws have changed.
BOLLING: What's the best way to bring --- maybe they say if you just institute ObamaCare that left it will bend across curve down. We haven't seen that. What's -- how do we really bend the cost curve down?
MCKECHNIE: Well, if you want to find the poster child for health care policy, go to Indiana. In Indiana, they did bend the health care cost curve down. The Affordable Care Act is nothing, it's not affordable. It's not really even attainable anymore.
But in Indiana, they found the secret sauce and that was to convert their government plans to HSAs and to convert their Medicaid plan under Governor Pence to HSAs or something like them the health -- the Indiana plan.
As far as I know, it's the only program that can claim credibly that has bent the cost curve down.
BOLLING: OK. Tell us about this study, we just heard that 8 of the 11 remaining healthcare Co-Ops are in financial bind. What happens if they short?
MCKECHNIE: Well all of those Co-Ops -- and first a large number of states, the exchanges took into their ranks. All of the people that couldn't find insurance previously and so they been ask to do something they really couldn't do. There's no healthcare underwriting anymore. And so, obviously, they're paying a huge number of expenses and they can't float themselves financially. Those people will be left to winds. They have to find replacement coverage, if they can. Can they afford it when they find a place .
BOLLING: But what happens? Where did they go? Where did they did they go? Did they go -- did they go in Medicaid? Is that what's going to be end up happening?
MCKECHNIE: No. They may not be able to qualify from Medicaid. It depends how much they earn. They could go back to their exchanges. They could buy the policy on the exchange. They could go find it through their bank, if their bank has an individual insurance broker. But it's going to be a challenge for those people. They're going to end up losing coverage.
BOLLING: What about .
MCKECHNIE: We'll be happy to look at them.
BOLLING: . the government? Will we, the taxpayer, be on the hook for any of the finances of these exchanges that may have put themselves in debt?
MCKECHNIE: You may. One of the challenges with this Co-Ops and exchanges, they are creatures of the government. And so taxpayer money is at risk here.
That taxpayer money, if the exchange is going down, it's probably going to go down with it.
BOLLING: All right. Guys, thank you very much to Kevin right now.
We have some breaking news.
MCKECHNIE: Thanks for having me.
BOLLING: We have some breaking news now from the IRS. It says now, more than twice as many taxpayer accounts may have been hacked and previously reported bringing the total to as many as 700,000 accounts. This all stems from a cyber attack last August when the IRS says data from only about 330,000 taxpayers were impacted, but the hackers gained access through the IRS app get transcript.
The IRS says, they will begin notifying those taxpayers affected by this hacking starting on Monday.
Shareholders of Apple are meeting today in California as the company racks up to support of even more big tech companies in its battle with the FBI.
So, what are the shareholders saying about this showdown with the government? That's next.
(COMMERCIAL BREAK)
LORI ROTHMAN, FOX BUSINESS CORRESPONDENT: And very good afternoon from the floor of the New York stock exchange. I'm Lori Rothman with your Fox Business Brief.
Well, oil closed at 2:30 Eastern and after that well, stocks turns out wild. First, oil settled lower today. Oil is up about 2 percent on the week. Down about nine tenths of 1 percent on the day. $32.78 is the settle and as you know, so goes oil, so goes the stock market.
The Dow right now is down 66 points. It opened higher but again turns out right when oil did the same thing.
A couple stocks to keep an eye on today. United Technologies hoping for a bit until it came out with new saying it's not too impressed with the deal that Honeywell is presented to take them over. Saying that 3theres too many -- that the synergies rather are overstated.
So shares of both of those (inaudible) companies are lower today. Weight Watchers down 27 percent on its surprise earnings meet "After the Bell" (inaudible) Oprah Winfrey. The largest shareholder, she's off to that $27 million today alone. Much more Fox Business after this.
(COMMERCIAL BREAK)
BOLLING: Capital shareholders gathering right now in Cupertino, California for the tech giant's annual meeting. But is Apple addressing the giant elephant in the room? In spite with the Federal government, our own Robert Gray is live in California getting reaction from shareholders.
Now, Robert, importantly, are the shareholders grilling Apple over this high profile battle?
ROBERT GRAY, FOX BUSINESS CORRESPONDENT: Not a lot of grilling. Tim Cook came out and made a joke and the annual meeting which just wrapped up by a few moments ago and saying, yeah, we've been in the news a little bit lately and then part of it with our relating to privacy.
There were some questions but by in large that we talked to, you know, dozens of folks out here. And there must have be in probably about 200, really little opposition to be found unspoken really in the meeting as well. And talking to investors, they weren't really concerned about an overhang for the stock going forward. Although, if you looked since February 16th, when the Apple received the order from the government to open the iPhone, the stock has trailed the brother S&P 500, both are down just a little bit today.
But you can see, there's been a little bit of a lag there. Certainly out performance by the S&P and say, you know, the question to hack or not to hack. Is even we've got folks here from Hawaii, Long Island, even from Florida. And we talked to them that there were concerns not only about whether Apple should opened it in personal security but there was also concerns about their security for the nation as well. Let's just hear what some of them said.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I feel security is probably more important than privacy. I think if we did not have our security, we would -- privacy would not be an issue.
UNIDENTIFIED FEMALE: Tim is absolutely right. The problem is not breaking into one phone. The problem is the president. You start from -- we just need to get into one phone to. Well, here are two suspicious guys that are on our no-fly list too. They've buying stuff at the pizza place. We go to check out the pizza place and the president it sets, I think is chilling.
(END VIDEO CLIP)
GRAY: Now, another computer scientist Michael Holley. He wants to share the house with Steve Jobs back in the next days. Tells me he also is not concerned about this is an overhang for the stock going forward. He did say that Steve talked to him while he was creating the first iPhone and said that security was a paramount important to him, obviously. And then making sure that the platform was secure and that apps couldn't take down the networks or disable the phone.
Holley also tell me that is basically going to turn down to the innovations that will come out. "So I don't think that the FBI is going to be a negative effect on the stock." But he did say "The real question is what future conquests Apple will roll out that aren't merely incremental improvements to polish to the polish product line."
Basically he did note that technically secured apps could forward investigators even if they got inside the iPhone. Just showing you what a complex problem this is, Eric.
And lastly speaking of polished product line. Someone did ask if there was anything new in the iPhone and Tim Cook said what's a little bit like Christmas Eve but what he didn't say is how close are we to Christmas morning. We do think there's some chatter out there about maybe some new products next month. But as for now, the ball is back in the Fed's court as we know, back to you.
BOLLING: Perfect. Great report, Robert. Thank you very much.
This legal battle could stretch on for years. Our own Liz McDonald joined us now with Apple's latest act. To find who is he, very important that the shareholders are behind Tim Cook, right?
ELIZABETH MACDONALD, FOX BUSNIESS CORRESPONDENT: Yeah that's right. They are and we know Tim Cook did elude to and said you know we're going to be tough. This is a privacy issue. And they're not backing down. And interesting, Eric, the board has not come out to say anything negative about Tim Cook and the company is doing. We've got Bob Iger, you know, chairman of Disney and also Al Gore is on the board along with Tim Cook.
So it seems like right now the board is backing Apple as well.
BOLLING: So you have the board on board, so to speak.
MACDONALD: Yes.
BOLLING: You h out the shareholders on board. Tim Cook seems to find and stay where he is not hacking into his own product. Let say this is going to be dragging on for a while. I'm guessing that the FBI is not going to say, OK, we are done now.
MACDONALD: That's right. It is to go into 2017. So what we're taking about is Apple is saying they do have constitutional rights here. They're being violated. Essentially, cannot -- the government cannot dragoon private sector company into, you know, creating a product for it to use for public use. And then, also, that ninth circuit, where Apple is -- where this battle is being fought out, it has already ruled that software is free speech. So Apple has also constitutional protection of that .
BOLLING: Constitution importantly because if it ever did get bumped up to the Supreme Court especially now for .
MACDONALD: Yeah.
BOLLING: . the decision goes back to lower court which is at Apple's corner right now.
MAC DONALD: Yes. Exactly. That's right. That's exactly right.
BOLLING: Can they -- can Apple hack into this encryption under six and then have a new encryption on a brand new product seven as Robert points out. Maybe a Christmas day release of whatever seven is and still keeps the security, the encryption.
MACDONALD: Well, that's the talk. Yes. Apple has take and said effectively and technically. Yes it can, you know, help out the government into getting into the San Bernardino shooters iPhone that he was using. You know, and there was also talk that too that there's tougher encryption and security in the works for future iPhones.
Now, the issue for the FBI is this that, this is in --already this Farook's boss who said yeah, break into the phone. And so -- and James Comey has refuted. Tim Cook saying, you know, what, Tim Cook is saying that code could get out into the wild.
BOLLING: Yeah.
MACDONALD: But Tim cook is been pretty good and Apple is pretty good at protecting this code already.
BOLLING: All right, with the bottom line is your trading. The only people trading Apple based on the fear that they maybe break into their own product. It doesn't look like that's going happen .
MACDONALD: It doesn't look that, yeah. That is right.
BOLLING: Liz, thank you very much.
MACDONLAD: Sure.
BOLLING: Let's take a check on the markets. As we head into the final hour of trading. Looks like the Dow Jones is down 53 points. The S&P down just couple on those 3 or so and the NASDAQ up small. So small, moves across the board. And that is where we stand right now.
(COMMERCIAL BREAK)
BOLLING: All right, we're heading into the final hour of trading with the Dow Jones and the S&P look great now. Dow Jones down 62 points. The S&P down four points and the NASAQ just having unchanged three in a little bit more than that three higher.
How about oil price? $32 set a barrel, down just a little bit $0.29 right now. Having it 32, 33, $35 of barrel and that's interesting because we're getting breaking analysis from Jason Rotman, Managing Partner at Lido Isle Advisor.
Now, Jason talk to us little bit about that $35 oil price. Is that's important for you?
JASON ROTMAN, LIDO ISLE ADVISORS MANAGEMENT PARTNER: Absolutely. I mean, if you look at the daily chart if you're of the more trading type person and you at look at the charts everyday. There's a $34, $75, $35 key resistance line that has failed, you know, three, four, five different times since January this year. That is the kind of decision level barrier line. That no matter all of this headline jargon that comes out, oil has had great difficulty getting above there and from the high oil is only down $0.20 today but you have to say that oil is down $2 from the high today. So it's kind of a bearish state today.
BOLLING: Yeah. Let's talk about that a little bit. Why is the stock market following the oil market? Now, I was hearing couple days ago and we had a gentleman talking about that as well. It seems to be for the last few months, oil and stocks attracting each other.
Meanwhile this is the tail wagging of the dog. Is it not? I mean if the oil market is, X the equity market is 400X.
ROTMAN: Correct. Correct. I mean basically the whole situation and, you know, our friend Bernanke had his own hypothesis on why the stocks are following oil. And he kind of called it a short-term correlation. It's not going to last forever. Obviously, it's hard to argue with that. But generally speaking the reason why stocks are following oil is that, I mean look, the recent news came out. JPMorgan, all these huge banks have massive, massive loan exposure to these energy companies. And if oil keeps going lower that's not a good thing for these banks. And banks are part of the market. It is really almost as simple as that.
BOLLING: You say and maybe that's simple. A lot of exposure on the banking side and also a lot people who are -- jobs tied to the oil sector. It could be beat up a little bit. But a low oil price .
ROTMAN: Sure.
BOLLING: . generally going forward is a good thing for equity market as people have more money to spend eventually tricks turtles its way into the bottom lines on companies, right?
ROTMAN: You know what, ultimately, I agree, Eric. I mean, listen here in Southern California, I see gas prices in the ones. I mean when was the last time that happened. So people are coming out more. They're more comfortable, you know, making discretionary spending choices. However the other side of the coin is that oil can't go too low. And, you know, what is that barrier price, you know, maybe it's 20, maybe it's 25 but as some point if oil gets that low which I don't believe it's going to. We're going to see some serious pain with these banks.
BOLLING: Going to level right there Jason. But I think it may end up being a $25 a barrel at some point. Thank you, Jason Rotman. Appreciate that. We'll be right back.
ROTMAN: My pleasure.
(COMMERCIAL BREAK)
BOLLING: All right, here's Marco Rubio responding to Donald Trump.
(BEGIN VIDEO CLIP)
RUBIO: It could fall into the hand if someone who basically has conned a significant number of Americans into believing he's something he's not. And this is important. This is the party of Reagan. This party is the party built on optimism and limited government. And last night you have the frontrunner in the Republican debate defending Planned Parenthood.
You had the frontrunner in the Republican debate saying he's not going to take sides between Israel and the Palestinians. That would be a stunning shift for this party and quite frankly make us indistinguishable from the Democrats.
(CROSSTALK)
UNIDENTIFIED MALE: . guarantee they .
UNIDENTIFIED MALE: . choose everyday against Donald Trump?
RUBIO: I'm going to do it. Possible.
UNINDENTIFIED MALE: Senator, your campaign at the RNC that you went into a --
END
(Copy: Content and Programming Copyright 2016 Fox News Network, LLC. ALL RIGHTS RESERVED. Copyright 2016 CQ-Roll Call, Inc. All materials herein are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of CQ-Roll Call. You may not alter or remove any trademark, copyright or other notice from copies of the content.)